Gold Prices Stuck as US Dollar, Yields Offer Conflicting Cues

GOLD CRUDE OIL TALKING POINTS:

  • Gold prices sealed in place as US Dollar, Treasury yields diverge
  • Crude oil prices still watchful for clarity on OPEC+ outlay quotas
  • SP 500 futures spirit during risk-off mood before Trump/Kim meeting

Gold prices continued to symbol time Friday, ripped between opposing cues from rising Treasury bond yields and a retreating US Dollar. The former undermined a interest of non-interest-bearing resources and pressured a yellow steel reduce while a latter bolstered direct for anti-fiat alternatives, charity it support.

Crude oil prices edged lower, oscillating within a operation that prevailed for all of final week as traders weighed adult prospects for an easing of outlay curbs adopted by OPEC-led producers to empty a tellurian supply glut. Saudi Arabia and Russia seem in favor, though other tip exporters – such as Iraq – mount in opposition.

RISK APPETITE SOFT BEFORE TRUMP/KIM MEETING

Looking ahead, SP 500 futures are indicating to a rather risk-off tone. This competence boost breakwater direct for a greenback and Treasury holds alike, weighing on yields and gripping bullion prices anchored. Sentiment-sensitive oil prices corner down alongside bonds though concrete follow-through seems doubtful until after a outcome of Tuesday’s meeting between US President Trump and North Korea’s Kim Jong Un.

Learn what other traders’ bullion buy/sell decisions contend about a cost trend!

GOLD TECHNICAL ANALYSIS

Gold prices continue to deposit along a reduce range of support defining a uptrend started in Dec 2016, now during 1294.38. A daily tighten next that exposes a May 21 low during 1282.27, followed by support in a 1260.80-66.44 area. Alternatively, a move above a top covering of trend support at 1311.75 targets a draft rhythm indicate during 1311.34.

Gold cost draft - daily

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices continue to negotiate support defining a rising trend in play given Jun 2017. A mangle of this barrier’s reduce boundary, now during 64.97, primarily exposes a Apr 6 low 61.84. Alternatively, a annulment above insurgency in a 66.22-67.36 area opens a doorway for a plea of a 68.64-69.53 region.

Crude oil cost draft - daily

COMMODITY TRADING RESOURCES

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

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